COVID-19 SMME EMERGENCY FUNDING & RELIEF OPTIONS

  1. BUSINESS GROWTH/ RESILIENCE FACILITY
  • This facility will fund the following:
  • Production/supply of health care and related products that will be utilised to combat the spread of COVID-19 pandemic.
  • Local production/manufacturing/supply of various products that will be required by the country emanating from a shortage due to COVID-19 pandemic.
  • Rationale for the facility
  • The funding will give local manufacturers and suppliers and opportunity to produce and strengthen their place in the market, which may lead to long-term contracts post COVID-19 pandemic.
  • For more information refer to this page: https://www.fasa.co.za/corona/Business-Growth-Resilience-Facility.pdf

 

  1. SMME RELIEF FINANCE
  • This facility will fund the following:
  • Soft loan funding that will keep the existing businesses a float during the COVID-19 pandemic for 6 months from April 2020.
  • Rationale for the facility
  • The majority of SMME’s will experience severe reduction in demand and subsequent reduction in revenues due to the COVID-19 pandemic. As a result, it is important to ensure that SMME’s do not close down completely and that they are supported with working capital to ensure that jobs are retained in the economy.
  • For more information refer to this page: https://www.fasa.co.za/corona/Guidelines-for-Debt-Relief-Application.pdf

 

  1. RESTRUCTURING OF FUNDED SMME’s
  • The following interventions will be provided to SEFA funded SMME’s that are negatively affected by the COVID-19 pandemic:
  • A payment moratorium/holiday will be given for a period of maximum of 6 months to reduce the instalment burden of loan obligations on clients during the COVID-19 pandemic.
  • The interest accrued will not be capitalised into the loan facility over the proposed 6-month maximum period.
  • Funded SMME’s must submit proof of the negative impact of COVID-19 pandemic.
  • This will be implemented using the SEFA Post Investment team and signed off by the Executive – Post Investment.
  • Debt restructuring – An analysis of SEFA funded SMME’s will be conducted to assess which clients require restructuring of the loan accounts.
  • Additional funding will be offered at prime less 5%.

 

  1. INDUSTRIAL DEVELOPMENT CORPORATION (IDC)
  • Limit the spread and immediate impact of the virus
  • Financial support to be provided by the IDC includes:
  • Support for the manufacturing of essential medical products.
  • R500 million for trade finance to import essential medical products
  • Working capital support
  • R700 million funding provided.
  • Funds to be shared between IDC, Small Enterprise Agency (SEFA) and National Empowerment Fund (NEF)
  • Earmarked to assist suppliers of identified critical goods that are affected by the COVID-19 pandemic.
  • For more information refer to this page: https://www.idc.co.za/2020/03/24/idc-interventions-in-response-to-covid-19/

 

  1. NATIONAL EMPOWERMENT FUND (NEF)
  • NEF is managing R200 million of COVID-19 Intervention Fund on behalf od the Department of Trade, Industry and Competition.
  • The fund has been set-up to assist manufacturers in the production of health care and related products to combat the spread of COVID-19 pandemic.
  • Funds will be to black empowered businesses.
  • The funds can be utilised for the following:
  • Working capital requirements, and/or
  • Acquisition of equipment
  • The minimum loan will be R500,000 and the maximum is R10,000,000.
  • The terms of the loan will be:
  • 60 months repayment term,
  • 12 months payment holiday (with 0% interest during this time),
  • Repayment over the remaining period at a fixed interest rate of 2.5%

 

  1. TOURISM RELIEF FUND
  • Once-off capped grant assistance to Small Micro and Medium Sized Enterprises (SMMEs) in the tourism sector to mitigate the impact of COVID-19 in order to ensure their sustainability.
  • Capped at R50 000 per entity, grant funding can be utilised to subsidise expenses towards fixed costs, operational costs, supplies and other pressure cost items.
  • The applications will be processed weekly, subject to availability of funds, while observing equitable spatial distribution in terms of provinces.
  • Categories eligible to apply for the Tourism Relief Fund include the following:
  • Accommodation establishments: Hotels, Lodges, Bed and Breakfast (B&B’s), Guest Houses and Backpackers.
  • Hospitality and related services: Restaurants (not attached to hotels); Conference venues (not attached to hotels); Professional catering; and Attractions.
  • Travel and related services: Tour operators; Travel agents; Tourist guiding; Car rental companies; and Coach Operators.
  • Non-qualifying activities
  • Fast food and take away restaurants, nightclubs, bars, gaming and gambling venues.
  • Franchised restaurants and those attached to tourism facilities.
  • Establishments wholly or partially owned by Government will not be considered.
  • Qualifying criteria
  • Proof of valid registration with Companies and Intellectual Property Commission (CIPC).
  • Must be an Exempted Micro Enterprise (EME) defined in terms of the Amended Tourism B-BBEE Sector Code, 2015 – Total annual revenue less than R5 million.
  • Must have a valid tax clearance certificate or PIN.
  • Proof of compliance with the minimum wage requirements.
  • Must provide proof of UIF registration for employees employed by the business.
  • Be an existing tourism-specific establishment as outlined in the scope of application (suppliers and intermediaries are not eligible).
  • Must be in existence for at least one business financial year.
  • Proof that the relief is required as a result of the impact of COVID-19.
  • Must submit the latest statements of financial position, financial performance and cash flows.
  • Must submit six months bank statements.
  • Grading certificate or proof of application to be graded for accommodation establishments.
  • Application form and frequently asked questions about the fund can be accessed here:https://www.tourism.gov.za/CurrentProjects/Tourism_Relief_Fund_for_SMMEs/Pages/Tourism_Relief_Fund_for_SMMEs.aspx

 

  1. PROUDLY SA – SUPPLIER OF GOODS & MANUFACTURING
  • Proudly South Africa is soliciting applications from companies which are facing challenges due to the COVID-19 pandemic.
  • They are referring qualifying companies up to the DTI for assistance.
  • This offer is not restricted to Proudly SA member companies but is open to all local manufacturers of goods and services
  • For more information refer to this page: https://cdn.ymaws.com/www.thecdi.org.za/resource/resmgr/newsletter2020/proudlysa.pdf

 

  1. OPPENHEIMER FAMILY FUND:

 

  1. RUPERT FUNDING – BUSINESS PARTNERS

 

  1. SA BANKS PAYMENT RELIEF MEASURES

ABSA

FNB

Nedbank

  • Delay your loan repayments through a 3-month payment holiday.
  • Monthly minimum repayment on credit cards has been reduced from 5% to 2.5% of the outstanding balance.
  • You can withdraw cash from any bank’s ATM without being charged the additional SASWITCH fee.
  • For clients wishing to access fixed-term or notice investments, the early release penalty will be waived.
  • For more information refer to this page: https://nedbank.co.za/content/nedbank/desktop/gt/en/business/covid-19-relief1/Overview1.html

Standard Bank

 

11. UIF-COVID-19 TERS National Disaster Fund

Requirements for UIF-Covid-19 TERS claims:

  • All employers whose operations fully or partially closed as a direct result of COVID-19.
  • Employers and Employees who contribute monthly to UIF.
  • Employers that are registered with the department of labour prior to March 2020.

 

  • The Claim Process:
  • Employers can apply online at https://uifecc.labour.gov.za/covid19/, following the registration process.
  • Employee information can either be captured individually or imported as a bulk file (prescribed file layout should be used).
  • Required documents to be submitted
  • Latest Bank Statement (in PDF Format)
  • The TERS claim period is from 27 March 2020 to 30 April 2020
  • Employees using passport numbers can now also submit online as the system accepts the passport number (previously they could not).
  • Payments are based on the Income Replacement Sliding Scale (scale not yet published):
  • The percentages payable are anything between 38% - 60% of the salary up to the maximum of R17,712.00.
  • The minimum payment will be R3,500.00 and maximum payment is R6,730.00.
  • Employers paying reduced salaries can now also claim, but the total salary + TERS benefit may never exceed the usual gross salary of an employee
  • Example - Employee earns R25,000.00 per month the highest remuneration replacement rate will be R17,712.00 x 38% = R6,730.00
  • Please keep in mind that any portion of the salary already paid will be or could be deducted from the benefit before paid.

 

  • Additional Information to be noted:
  • Only bargaining councils need to open a new bank account.
  • Please note that the UIF Reference number is not the SARS number U000000000, it is an 8-digit numeric number registered at the Department of Labour e.g. 1234567/8
  • Freelancers and employees working on commission cannot submit a claim and are not covered by the UIF Act.
Please do not hesitate to contact us if you need any assistance on completing you TERS submission.


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